About Home Depot, Inc. (The)
Home Depot, Inc. (The) (HD) is a Consumer Cyclical company in the Retail-Lumber & Other Building Materials Dealers industry with a market capitalisation of $336.5B. The stock trades at 24.00x trailing earnings and yields 2.74%.
- Sector
- Consumer Cyclical
- Industry
- Retail-Lumber & Other Building Materials Dealers
- Market cap
- $336.5B
- P/E ratio
- 24.00
- EPS (TTM)
- $14.23
- Revenue (TTM)
- $164.7B
- Free cash flow
- $12.6B
- Profit margin
- 8.6%
- Dividend yield
- 2.74%
- Shares outstanding
- 997.7M
Financial health: Fair5/10
2 strengths, 2 concerns. Weakest points: debt to equity, earnings growth.
- Debt to equity: 4.20 (Concern, benchmark < 0.5) — Debt of 4.20x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 4.1y (Watch, benchmark < 4 years) — Net debt of $52.5B is 4.1x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 1.06 (Watch, benchmark > 1.5) — Short-term assets cover 1.06x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 110.5% (Strong, benchmark > 15%) — Earns 110.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 33.3% (Watch, benchmark > 40%) — Keeps 33.3% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 8.6% (Watch, benchmark > 10%) — Turns 8.6% of revenue into profit, short of the > 10% mark.
- Free cash flow: $12.6B (Strong, benchmark positive) — Generated $12.6B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 3.2% (Watch, benchmark > 10%) — Revenue changed 3.2% year on year, short of the > 10% mark.
- Earnings growth: -4.4% (Concern, benchmark > 10%) — Earnings changed -4.4% year on year, well short of the > 10% mark.
- Payout ratio: 64.6% (Watch, benchmark < 60%) — Pays out 64.6% of earnings as dividends — above the level usually considered sustainable.